Rayonier Advanced 2025 Q2 Earnings Sharp Net Loss Amid Revenue Drop

Rayonier Advanced Materials Inc. reported second quarter 2025 results on August 6, 2025, significantly missing expectations with a net loss and downward guidance revisions. The company reported a steep decline in revenue and swung to a net loss, reflecting the impact of operational disruptions and non-cash charges. Management revised its full-year EBITDA and free cash flow outlook lower.

Revenue
Rayonier Advanced’s total revenue fell 18.9% year-over-year to $340.05 million in Q2 2025. The Cellulose Specialties segment generated the largest portion of revenue, with $207.68 million, followed closely by the second listing of the same segment at $208 million. The Biomaterials segment contributed $6.53 million and $6 million in two separate entries. Cellulose Commodities revenue stood at $59.44 million and $59 million, while Paperboard revenue totaled $47 million and $46.45 million. High-Yield Pulp saw $28.86 million and $29 million in revenue. Eliminations reduced total revenue by $9 million and $8.92 million, respectively. Corporate revenue was reported at $0, and net sales amounted to $340 million.

Earnings/Net Income
Rayonier Advanced swung to a net loss of $363.18 million, or $5.44 per share, in Q2 2025, compared to a net income of $11.39 million, or $0.17 per share, in the prior-year period. The significant deterioration in earnings reflects the challenges faced during the quarter, marking a clear underperformance in key profitability metrics.

Price Action
Shares of Rayonier Advanced experienced mixed price action, with a 14.20% gain in the latest trading day, a 1.53% decline for the week, and a 6.76% drop month-to-date.

Post Earnings Price Action Review
A strategy of buying Rayonier Advanced shares following the earnings report and holding for 30 days resulted in a -24.13% return, significantly underperforming the benchmark return of 48.58% during the same period. This strategy delivered an excess return of -72.72% with a CAGR of -9.09%. The portfolio exhibited high volatility at 65.97%, a maximum drawdown of 0.00%, and a negative Sharpe ratio of -0.14, underscoring the poor risk-adjusted returns.

CEO Commentary
De Lyle Bloomquist, President and CEO of Rayonier Advanced, attributed the second quarter’s results to extraordinary challenges including tariff volatility, operational disruptions, and non-cash charges. He emphasized that these issues are largely behind the company and that stabilization and recovery are now underway. Bloomquist expressed confidence in the strategic direction and reiterated the long-term goal to achieve over $300 million in run-rate EBITDA by the end of 2027.

Guidance
The company revised its 2025 Adjusted EBITDA guidance to a range of $150 million to $160 million, down from earlier expectations. Adjusted Free Cash Flow is now expected to be negative $10 million to $25 million, with improvement anticipated in the back half of the year. The long-term plan remains on track to nearly double EBITDA over the next two years relative to the revised 2025 outlook.

Additional News
On August 5, 2025, Rayonier Advanced Materials Inc. (NYSE:RYAM) reported its second quarter 2025 results for the period ended June 28. The company’s leadership reiterated a focus on its strategic initiatives and long-term growth objectives, including its Cellulose Specialties strategy, Biomaterials investments, and cost-reduction efforts. There were no disclosed mergers, acquisitions, or C-level executive changes in the immediate period surrounding the earnings report. Additionally, the company did not announce any dividend or share repurchase programs, maintaining a capital allocation strategy that prioritizes operational recovery and strategic growth.